NuScale Power Corporation (SMR): A Bull Case Theory

Core Thesis - NuScale Power Corporation is positioned as a leading player in the small modular reactor (SMR) nuclear sector, with significant potential for growth as it targets commercial deployment in the late 2020s [2][4]. Regulatory and Market Position - The company has received the first NRC-approved SMR design, which is expected to facilitate its entry into the market and meet the increasing demand for reliable on-site baseload generation, particularly from data centers [2][5]. - The AI Action Plan is anticipated to expedite nuclear permitting processes, providing a favorable regulatory environment for NuScale's deployment efforts [2][5]. Financial Outlook - Currently, NuScale remains pre-revenue, but its Department of Energy (DOE) design certification has reduced regulatory risks, thereby enhancing investor confidence in its technology [3][5]. - Although no direct agreements with hyperscale data centers have been announced, the company is well-positioned to capture demand for low-carbon energy solutions in the tech sector [3][5]. Investment Potential - The first-mover advantage in the SMR market could lead to substantial upside if commercial deployment is successful, making NuScale an attractive long-term investment opportunity [4][5]. - The combination of regulatory support, market potential in critical infrastructure, and the inherent advantages of SMR technology contribute to a compelling growth narrative for the company [5]. Competitive Landscape - Despite the promising outlook, NuScale faces execution risks associated with pioneering technology, potential regulatory delays, and competition from alternative energy solutions [4][5].